BankBazaar expects revenue growth of 150% in FY18
Financial marketplace BankBazaar said it expects its FY18 revenue to grow 150% from a year ago.
Most of this growth is coming from credit products which have grown 178% in FY18, the company said in a statement.
BankBazaar provides an online platform for consumers to compare and buy loans. It aggregates products such as credit and debit cards, loans, savings and investment products, and insurance. Till date, it has raised $110M through funding from investors such as Amazon, Fidelity Growth Partners, Sequoia Capital and others.
In FY17, BankBazaar reported a total revenue of Rs71.16 crore, and total expenses of Rs163.34 crore, according to RoC documents sourced from Tofler. It also reported loss (after tax) or Rs92.18 crore in the same fiscal year.
Most credit purchases are from the salaried class in metro cities with an average age of 30 years, Adil Shetty, chief executive officer of BankBazaar, said in an interview. Mumbai is the biggest consumer for home loans; Delhi is the biggest consumer of car loans, while Bangalore tops the list for personal loans on the company’s platform, he added.
According to the Reserve Bank of India (RBI) data, personal loans given out by banks and non-banking financial institutions (NBFCs) increased by 17.3% in November 2017, compared to an increase of 15.2% in November 2016.
Banks depend on credit bureaus like CIBIL to check credit worthiness of the buyer, and Shetty estimates that each bureau has credit data of around 250 million customers. He added that there are around another 500 million customers in India who are capable of buying a credit product.
Among investment products on Bankbazaar, insurance products have grown at 146% YoY in FY18. The company had launched online mutual funds in January 2017, and according to Shetty, mutual funds are poised to grow dramatically in FY19. “We are already booking 100 new customers on a daily basis, and each customer is investing in 200 folios. I see this number doubling by March 2018,” Shetty added.
The company added in its statement that it expects to get 100 million visitors on its platform by the end of the current quarter (Q4 FY18), up from 70 million user visits in Q3 FY18. It also claimed that in Q3 FY18, its revenue grew by 168% when compared to the same period last year, while total expenses grew by 53% year-on-year.
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